Feeds

Sullivan fingers Ebbers in WorldCom fraud whodunnit

Trial continues

  • alert
  • submit to reddit

5 things you didn’t know about cloud backup

Scott Sullivan fingered Bernie Ebbers in a New York courtroom yesterday linking the former boss of WorldCom to the $11bn (£5.8bn) fraud that brough the giant telco to its knees.

The prosecution's star witness and former WorldCom CFO - who has already pleaded guilty for his part in the WorldCom fraud - testified that Ebbers was one of those who helped carry out the fraud.

"I falsified financial statements of the company, made adjustments to revenue for the purpose of meeting analyst expectations," Sullivan told the court, the Washington Post reports.

Asked who else took part he replied: "Bernie [Ebbers], David Myers, Buddy Yates, Betty Vinson, Troy Normand."

This is the first time that Ebbers, who denies the charges, has been linked directly with the fraud.

And far from the defence's assertions that Ebbers left accounting matters to Sullivan because he didn't have the necessary financial know-how, Sullivan described Ebbers' grasp of complex financial matters as being even better that some CFOs.

"He's not an accountant, but he has a good grasp of accounting concepts," said Sullivan, who also portrayed Ebbers as micromanager obsessed with cost-cutting.

In his eagerness to cut cost, Ebbers even began to monitor the amount of coffee being drunk and suspected that some employees were taking it home, reports USA Today.

Sullivan, who is expected to testify again today, also revealed that he used cocaine and marijuana while working at WorldCom and was also convicted of drink-driving in 1984. ®

Related stories

WorldCom directors $54m lawsuit deal unravels
Ebbers fortune at risk as share prices slid
Former Worldcom directors cough up $18m
Ebbers never made 'an accounting decision' - witness
Ebbers feared fortune would be 'wiped out'
Ebbers knew of financial fiddling
Ebbers' financial know-how probed
Gloves off in Ebbers WorldCom fraud trial
Ebbers fraud trial kicks off
Ebbers faces WorldCom court showdown
Former Worldcom directors cough up $18m
MCI breaks free from Chapter 11
WorldCom gets sums wrong by $74bn
Bernie Ebbers faces criminal charges

Boost IT visibility and business value

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Gartner critical capabilities for enterprise endpoint backup
Learn why inSync received the highest overall rating from Druva and is the top choice for the mobile workforce.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.